| The basic and primary feature of non-profit organizations is "not-for-profit",which has been deeply rooted among the people.But the real cases of 1)Red Cross Society of China renting out the disaster preparedness warehouses for commercial purpose;2)Bill & Melinda Gates Foundation adopting a dual-track model under which both investment and public-benefit project operation are carried out;and 3)Nobel Foundation conducting risk investment inspire people to reconsider the essence of not-for-profit.There are many contradictions and conflicts in the legal norms of China and even of all the countries and regions of the world regarding civil non-profit organizations' seeking profits behavior.As a result,law enforcers are not able to conduct adequate supervision over civil non-profit organizations' excessive seeking profits behavior,while legitimate seeking profits behavior is constrained by the "not-for-profit" principle,thus severely hindering civil non-profit organizations from raising funds.In view of the above-mentioned facts,the paper focuses on the decision-making difficulties with respect to the Seeking Profits Behavior of non-profit organizations.It first analyzes the financial motivation factors of Seeking Profits Behavior and next analyzes the ways to make profits and establishes the methods for measuring profit-making strength in accordance with financial management theory and public management theory with a combined method of normative research and empirical research.Next it systematically studies the relationship between Seeking Profits Behavior and the performance of public-benefit projects and analyzes the mechanism or route of impact of profitable behaviors on the performance of nonprofit organizations with the maximization of the performance of public-benefit projects as the basis.In the end,it gives suggestions in terms of financial policies for Seeking Profits Behavior management.The main conclusions of this paper are as follows:(1)Civil non-profit organizations may have seeking profits behavior,even must have seeking profits behavior under certain conditions,which is determined by the essential feature of "not-for-profit" and is also determined by the motivation factor of improving the financial soundness of civil non-profit organizations.(2)The financial objective of civil non-profit organizations is to maximize the performance of public-benefit projects after profit-making concept and business behavior are introduced.That is to say,civil non-profit organizations' seeking profits behavior must be conducted mainly for social value while taking account of economic value,and civil non-profit organizations must strive to find the best balance point between public welfare and business;(3)There are correlations between the three dimensions of seeking profits behavior and civil non-profit organizations' performance of public-benefit projects,but for different profit-making methods and different profit-making strength,the correlation degree,direction and significance varies significantly;(4)Under the profit constraint mechanism composed of the government,beneficiaries,donors,profit and civil non-profit organizations,the civil non-profit organizations should not and can not maximize profit intensity.Therefore,the government should make scientific financial policies from aspects including fundraising,investment,income and expenditure management as well as income distribution,encourage reasonable activities of civil non-profit organizations and restrain their undue profit-making ones.The first is fundraising policy: expand the fundraising channels of civil non-profit organizations,reduce income concentration and restrain excessive accumulation of net assets.The second is investment policy: lay equal stress on income growth and risk control.Third,classify and determine the intensity of profit-making activities according to the relevant standards of the purpose;flexibly determine the annual expenditure of public-interest activities observing the matching principle;adjust the ratio of management fees of charitable organizations in a practical and realistic manner.The fourth is income distribution policy: maketize the salaries of civil non-profit organizations gradually;non-distribution constraint principle should not be an "iron law",and investors can get moderate returns;adhere to the principle of combining tax incentive with restraint regarding profit-making activities.The fifth is to lay equal stress on publicity and confidentiality of the financial reports of civil non-profit organizations,while information of their profit-making activities should mainly be public.The paper shows 3 main innovative points:(1)Research perspective innovation.Looking throughout the regulation literature of China,though relevant financial policies are not systematic,they are contained in a great number of government documents.However,the financial policies were made either from the abstract concept of non-profit or from ?bookishness?.As a result,it is not only that there are doubts on the legislative effect,but also that it lacks enforceability.Based on the correlation between Seeking Profits Behavior and the performance of public-benefit projects,the paper puts forward financial policies for civil non-profit organizations,which will help to improve the performance of public-benefit projects of civil non-profit organizations.(2)Theoretical viewpoint innovation.On the basis of existing research achievements,possible theoretical innovations are mainly: First,the paper suggests that the maximization of performance of public-benefit projects is the financial objective of civil non-profit organizations,which should be regarded as the starting point and destination point of Seeking Profits Behavior.Secondly,the paper distinguishes non-profit legal persons from natural person employees and investors,thus forming the legal basis for the marketization of employees' salaries and the dividend distribution among investors and other co-profitable activities.Thirdly,the paper divides Seeking Profits Behavior into self-profitable activities and co-profitable activities,thus providing scientific basis for the legislation of differential taxation.Fourthly,the paper includes the net assets accumulation into Seeking Profits Behavior,which will help to trigger the public's attention to the accumulation of large net assets of China's civil non-profit organizations,thereby promoting civil non-profit organizations to increase public welfare expenditures and further improve the performance of public-benefit projects.(3)Innovation of research methods.Firstly,learn from the financial vulnerability model proposed by Change and Tuckman rather than applying blindly,and test its scientificity as well as the practicability of civil non-profit organizations to make the prediction conclusion of financial vulnerability more reliable;secondly,regarding the 2011-2015 work report data of public-raising foundations registered and managed by the Ministry of Civil Affairs as the sample,use the panel data model to analyze the relationship between profit-making activities of civil non-profit organizations and three dimensions like public welfare performance,efficiency as well as effect,and then find out the prominent explanatory variable affecting public welfare performance,so as to seek the key point for making financial policies and provide a new basis for financial policies suggestions;lastly,use the Logistic Model in which species have natural enemies in ecosystem and suffer insufficient resources like food and space to make a simulation analysis of changing process and boundaries of civil non-profit organizations' profit intensity under the profit constraint mechanism,so as to help the research on profit-making activities turn into a general one from a specific one.This paper is of practical significance for clarifying the financial target of profit-making activities of civil non-profit organizations and improving the financial management mechanism of the government,so as to improve the public welfare performance of civil non-profit organizations,strengthen their financial stability and promote their sound and ordered development. |
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